Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Unlock the editor’s digest in free
FT editor Raula Khalaf selected his favorite stories in this weekly newsletter.
The pound rose to $ 1.5 in early November, as the UK inflation was combined with the widespread weakness of the dollar to lift the sterling.
For the first time since the US election for the first time on Tuesday, Sterling has risen to the sterling level. It has risen to 3 percent so far this month, has helped by one Dollar Investors are as concerned that President Donald Trump’s Stop-Start Trade Trade War is being damaged in the US economy.
These gains have been identified as a reverse since January, while anxiety over the view of the UK public money is scattered Sterling And the UK government bond. Since then, more than expected, the higher inflation encouraged Bet that the interest rate on the bank of England would be slow to reduce interest rates.
“The pound has a better interest rate support but is now on the back burner.
After the US elections, two years after the high hit, investors have bet that Trump’s tariffs and other economic policies will increase inflation, the dollar has decreased since January due to the more economic loss from the White House.
MUFG senior currency analyst Lee Hardman says, “It sends another reminder that the market participants are no longer confident that President Trump’s policies will increase US dollars and strengthen the US,” said senior currency analyst Lee Hardman, MUFG.
Royal London Asset Management’s chief and cash chief Craig Inch says Sterling’s power is a combination of “our slow fear”, which will make the cost of taking OROW OROW more difficult to reduce the cost of adoption in the United Kingdom’s inflation data. In January, Inflation has increased More than 3 percent of the expectation.
The BOE is expected to keep the interest rate on a huge interest rate of 5.5 percent at his meeting on Thursday. Levels in the market advise that traders believe that the BOE and the Federal Reserve will cut two more quarter-points this year, more likely to be the third of the Fed.
Ward -oriented move for Sterling comes in spite of the OECD this week To reduce the forecast of its growth For the UK, since countries around the world have been affected by US tariffs. The Paris-based company is now expecting the UK GDP growth to be 1.4 percent for 2025, it has decreased by 0.3 percent points from the previous calculation.
However, the pound surrounds trade concerns this year, as investors bet that the UK is less in contact with tariffs than some other economies.
Last week, the UK government has re -confirmed his commitment to US trade, UK Prime Minister Sir Kair Starmar has said that he was “disappointed” by the latest tariff of the United States related to Steel and Aluminum, but the country would put all alternatives to the “alternative” table in response to the US administration.
